According to today’s reports in the Herald Sun, ANZ has admitted it’s fault in approving finance to a pensioner which was outside of his means and have consequently decided to forgive his debt.
In line with the reformed lending policies under the new consumer credit protection laws, the bank has agreed to wipe a pensioner’s $18,600 credit card debt.
Alec Stubbs, 72, was offered an astonishing $46,000 credit card limit through ANZ, despite only receiving around $400 a week in pension payments.
According to the daily, ANZ spokesman Stephen Ries the credit limit was provided in error, nonetheless the banks takes responsibility for it’s mistakes.
“It’s clear this customer’s credit limit should not have been increased to this extent, and due to the exceptional circumstances we have decided to clear this debt to ensure the family is not placed under any additional stress at this time,” Mr Ries told the daily.
“However, we encourage any customers that find themselves in financial hardship to contact us early so we can help them work their way through the situation.”
Mr Stubbs had a total debt of $36,000 and an available credit limit of $70,000, through ANZ and CBA credit facilities, among others
CBA spokesman Steve Batten told the Herald Sun that they had stopped making unsolicited finance offers to welfare recipients in 2007, and those who requested extra credit had to pass a financial test.